Tillis legislation protecting veterans from predatory loan practices becomes law

The president on July 25 signed into law a bipartisan bill cosponsored by U.S. Sen. Thom Tillis (R-NC) that clarifies certain requirements for U.S. military veterans seeking to refinance their mortgages.

Sen. Tillis in June introduced the Protecting Affordable Mortgages for Veterans Act of 2019, S. 1749, with U.S. Sen. Kyrsten Sinema (D-AZ) to safeguard veterans from predatory loan practices and help them more easily access their earned homeowner benefits, according to a bill summary provided by Sen. Tillis’ office.

Specifically, S. 1749 revises loan seasoning requirements related to a refinanced U.S. Department of Veterans Affairs (VA) housing loan, according to the congressional record, which says the bill modifies current law to allow the VA to guarantee a refinanced home loan when the borrower has made six consecutive monthly payments, or 210 days after the first payment is due.

“Passage of the Protecting Affordable Mortgages for Veterans Act continues my work to protect veterans and ensure they receive the benefits they rightly deserve,” said Sen. Tillis.

Last year, he introduced the related Protecting Veterans from Predatory Lending Act of 2018, which was codified into law to require that lenders demonstrate a material benefit to veterans when refinancing their mortgages.

“I was proud to introduce bipartisan legislation to protect veterans from targeted predatory home loan practices and build the support needed to get it codified into law,” Sen. Tillis said.